The pound has continued its run that is impressive against dollar in recent weeks, regardless of the greenback having done very well against other currencies.
We’ve observed optimism that keeps growing the UK economy this present year following an extraordinary early rollout associated with Covid vaccine which will enable the economy to reopen sooner plus the data recovery become stronger.
Clearly with regards to the UK, we’re from the base that is low. Merely a months which can be few, we had been dealing with the possibility of no-deal Brexit at the same time whenever economy was indeed among the hardest struck by the pandemic.
What it means now though is the fact that cable is approaching 1.40 and there aren’t numerous indications of fatigue in the rally. The stochastic and MACD on the chart that is daily look really healthy.
That could of course change the closer we get compared to that major barrier that is mental. For the time being, the set has pulled back slightly and key help could be being eyed up being a rotation point that is possible.
That may have previously occurred, with all the 61.8 fib from 12 Feb lows to 16 Feb highs appearing to have offered some support. But I’m not convinced. It’s the long term fibs in the 4-hour chart that’ll be of interest if you ask me if it can push lower once again, with all the buck appearing straight back in favor overall.
Here, the 38.2-50 fib area falls around the 55/89 SMA band, as the 61.8 fib falls across the 200/233 SMA band, both of that have been support that is important this ascent. Some slack among these may suggest we’re in modification territory. The pound has continued its run that is impressive against dollar.